What You Need to Know Before Opening a Café
Opening a café is a great business idea, but it’s important to carefully assess the risks, as competition can be fierce. So, before seeking financing, consider these important points:
Create a simple and objective business plan , which can be adjusted later;
Choose the location carefully , select a busy area, preferably close to homes or businesses;
Hire competent employees , with team botim phone number data and good work ethics ( learn how to hire the best professionals );
Create good relationships with suppliers , carefully evaluating the quality of the products you intend to purchase;
Know in detail all the expenses inherent to opening and maintaining the café, such as investment expenses (tax obligations, renovation work on the space, basic and technical equipment, software, etc.) and monthly fixed costs (expenses with suppliers, rent, employee salaries, accounting expenses, consumables, equipment maintenance, marketing and advertising, etc.).
Financial Support for Opening a Café
Even though you know the costs involved in opening a café, does the dream persist? Are you just missing financing? There are different types of support that can help, depending on the situation you are in and the type of funds you need. We have listed the main types of support to help you get your business off the ground and into the future (and make a profit!):
1. Microcredit
It is the ideal solution for obtaining financing even without income or guarantees. Specially designed for the unemployed, young entrepreneurs looking for their first job and workers in precarious conditions, it allows a maximum financing of 15 thousand euros. For more information, contact the National Association for the Right to Credit (ANDC) .
2. Bank Credit
This is probably the best-known type of financing, but you should be careful when applying for it. Analyze the interest rates and fees in detail, and don't forget to read all the clauses! Contact the various banks and choose the one that best suits your situation. You can also use the private Mutual Guarantee system, designed for situations where there are not enough guarantees to access bank credit.
3. IEFP Support
The Employment and Vocational Training Institute offers various types of support for starting a business, particularly for the unemployed, young people looking for their first job or self-employed workers, as long as they are registered with the employment centre. If you fall into one of these situations, you can access these types of support:
Payment of unemployment benefit in one go;
Microinvest credit line (financing up to 20 thousand euros);
INVEST+ credit line (financing up to 100 thousand euros);
Technical support in the preparation of the business project.
4. Crowdfunding
Crowdfunding can be a great way to finance your café startup. To do this, you simply need to access an online crowdfunding platform and create a campaign with your business idea, setting a funding target. Check out the crowdfunding platform in Portugal. Learn more about crowdfunding and how to create a campaign on these platforms.
